It is preferred to make the ghusl, perfume one’s self and don one’s best attire on the occasions of the two ‘ids.
Ja’far ibn-Muhammad relates from his father on the authority of his grandfather who reported that the Prophet would wear a Yemeni cloak on every ‘id. This is related by ash-Shaf’i and al-Baghawi.
Al-Hassan as-Sibt says: “The Messenger of Allah ordered us to wear the best clothes we could find for the two ‘ids and to apply the best perfume we could find and to sacrifice the best animal we could find.” This is related by al-Hakim and in its chain is Ishaq ibn Barzakh whom al-‘Azdi declares to be weak while Ibn Hibban says he is trustworthy.
Ibn al-Qayyim writes: “The Prophet used to wear his most beautiful clothes for them and he had a special cloak that he would wear on the two ‘ids and Jumu’ah.